## Hong Kong SAR Economic Integration with the Pearl River Delta

_IMF Working Papers, December 1, 2008_

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## Bibliographic details
- Authors: Olaf Unteroberdoerster, Hongyi Chen
- Published: December 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451871319.001

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### Summary
- Hong Kong SAR's economic integration with the Mainland has primarily taken place in the Pearl River Delta (PRD).
- Taking stock of integration trends, this paper discusses key implications for ensuring economic benefits of further integration are sustained and associated costs minimized.
- Besides further investments in infrastructure, Hong Kong SAR's role as a producers services and finance hub will depend on frictionless movements of goods, services, people and know-how, requiring policy coordination to further promote trade and investment and developing a common human skills base with the PRD.
- Regional cooperation will also be needed to minimize the costs of rising levels of cross-border pollution.

### Key themes and findings
- Integration locus: Pearl River Delta (PRD) is the primary area of Hong Kong SAR–Mainland economic integration.
- Drivers of sustained benefits:
  - Further investments in infrastructure.
  - Frictionless movements of goods, services, people and know-how.
  - Policy coordination to promote trade and investment.
  - Development of a common human skills base with the PRD.
- Costs to manage:
  - Rising levels of cross-border pollution requiring regional cooperation.

### Policy implications and recommendations
- Invest in infrastructure to support deeper integration.
- Promote frictionless cross-border movements of goods, services, people, and know-how through coordinated policies.
- Develop a common human skills base with the PRD to support Hong Kong SAR's role as a producers services and finance hub.
- Enhance regional cooperation to minimize the costs associated with cross-border pollution.

### Subjects and keywords
- Subject: Environment, Exports, Foreign direct investment, Labor, Trade in services
- Keywords: division of labor, Hong Kong SAR, market capitalization, SAR company, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/hong-kong-sar-economic-integration-with-the-pearl-river-delta-22524_